Morgan Stanley: The US dollar index is unlikely to fall below 100

Morgan Stanley expressed doubt about whether the dollar index will fall below the key level of 100, despite Federal Reserve Chairman Powell's statement at the Jackson Hole meeting that future policies would be relaxed, with risks leaning towards a further softening of the dollar. "Both psychologically and technically, the 100 mark for the dollar index is very important. It's hard to break through this level without changes in global power," wrote David Adams, head of G-10 foreign exchange strategy at Morgan Stanley, in a report released on Tuesday. He added that political risks in Europe may still be underestimated while the U.S. 2024 election is a clear risk event favoring the dollar.